Hi Pal,
My previous article was a general view and for a literary audience nor was it a research paper though i have done quite a lot of lateral thinking on the subject.The word exponential should be taken in a literary sense and in tune with the general flow of the article and can be replaced by "Phenomenal"if you wish.
The real reason for writing the article was that after using the brilliant capabilities of amibroker and rigourous testing of most of the indicators and systems designed on this group by equally brilliant people and also designed elsewhere in mags and other trading platforms i did form a tentative conclusion that mathematics being an exact science becomes a handicap on many trading occasions.The indicator usage and backtesting facilities of amibroker also makes amibroker a sort of exact science as you come to know the capacities and limitations of the system you have designed for your trading activities.The attenuation of the system to increase your trading efficiency and profits by using mathematical formulae also has its limitations and the final squeeze in profits comes down to the risk / reward factor.Looking at maximum drawdowns and the profits by automation gives one a stark view of
how much you can expect from your trading activity and also the limits of maths and formulae designed at further attempts to maximise profits results in an exponential increase in "a hundreadth of decimals" and not integers and also results in an increase in risk.
I would like to apply the exact science to know about the holy grail as an interested party in this business of investing .I have come across this grail on numerous occasions as a holy grail system ,holy grail indicator,holy grail trading platform,or just simply the holy grail.The exact characteristics of the grail are missing and the main aim of most investors on any trading platform seems to be to hunt for the holy grail. A search of the Bible, which i believed would give me some sort of clue the grail being holy, by a google search from page to page on various different copies on different websites did not give me any mention of the holy grail and i think nowhere is the grail mentioned in the bible.
Ayn Rand as like all the rest has just made a mention of the holy grail in her novels.Nowhere has she defined it.Her books were published in the late fifties and as of date i have never yet come across any living being who has lived up to her primary characters either in the methods of creating wealth or in her brand of capitalism.My personal opinion is that she has put far too much faith in the goodness of man and her books are hyped more on hope and dreams for mankind and a utopian world than on reality.(The closest she came to reality was in "The virtue of selfishness").
I found these statistics on a website called warrenbuffettsecrets: In 47 years, Buffett’s investment company, Berkshire Hathaway has achieved returns of 259,485% versus the S&P 500 returns of 4,783%. The difference in results is an astonishing 254,747%!
Thats the main reason i responded to the holy grail question asked by Mr Davis under this subject . Does the holygrail connote unlimited riches beyond the dreams of avarice.Are these riches in monetary terms or living in a castle or in some luxurious villa in tahiti as was mentioned by some on this group or is it simply a new way of life or something else and what is the price to be paid for it.Do we after attaining it become a king Midas who finally turned his daughter into gold.Newtons laws say for every action there is an equal and opposite reaction .Is that reaction sleepless nights, big drawdowns,loss in reputation or is it some of what is mentioned above. I would be interested if someone finds out what is exactly meant by the holy grail.Any website, book,pamplet giving formation or any investors personal opinions.I mean we are all after the
grail.
Meanwhile i am back to using the exact sciences for my trading activities.
Have a nice weekend.
--N!!
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